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Leverage Staking
Per Token & Leverage multiplier -> APR/APY
There is a traditional compound interest calculation. The formula is
This is where the APY calculation is borrowed from, and the period is adjusted to account for the Stayking Protocol's epoch basis and fee subtraction rather than daily compounding.
- SE StaykingEpoch = Per 6 hours
- LR, LeverageRatio -> Leverage multiplier (x10 ~ x2.5)
APR | APY (x1.0) | APY (x1.5) | APY (x2.0) | APY (x2.5) | |
|---|---|---|---|---|---|
EVMOS | 81.80% | 126.54% | 240.92% | 412.99% | 671.81% |
EVMOS(/w Fee) | - | 108.76% | 201.59% | 335.65% | 529.23% |
ATOM | 20.68% | 22.97% | 36.36% | 51.21% | 67.68% |
ATOM(/w Fee) | - | 20.46% | 32.20% | 45.09% | 59.24% |
OSMO | 20.84% | 23.16% | 36.69% | 61.70% | 68.35% |
OSMO(/w Fee) | - | 20.63% | 32.49% | 45.51% | 59.81% |
/w Fee
In addition to the 10% commission calculation, your return may be somewhat lower than your expected return if you exclude Tx fees, loan interest, valuator commissions, etc.
Since it is the same asset, you will lend tokens from the lending pool based on a leverage multiplier based on the collateral asset, and cross-zone staking is possible depending on the tokens you want to stake based on the total asset.
When we talk about leveraged staking with a single asset, we can see it as leveraged staking through the schematic below.
Conversely, if the leveraged staking token asset and the lending pool token are different, you can create a leveraged staking position through the price ratio as shown below.
Due to the nature of the Cosmos ecosystem, there is an unbonding period. To minimize the volatility of the borrowed assets, stakers borrow based on USDC, a stablecoin, and swap it for staking token assets at that time.
Cross-zone staking is possible depending on the token you wish to stake based on the total sum of the combined assets of the collateralized and borrowed assets.
Last modified 3mo ago